Indian Oil to supply SAF to Air India

In a landmark development for India’s aviation and energy sectors, Indian Oil Corporation Ltd (IOCL) has signed an MoU with Air India to supply Sustainable Aviation Fuel (SAF). The agreement follows Indian Oil’s certification from the International Civil Aviation Organisation (ICAO) for SAF production at its Panipat Refinery—making it the first Indian petroleum company to achieve this milestone.

The MoU was formalized in the presence of Indian Oil Chairman AS Sahney and Air India CEO Campbell Wilson.

Speaking at the signing, Sahney said that this partnership with Air India marks a strategic step in India’s transition to sustainable aviation. ““Partnering with India’s flagship carrier, we are aligning national growth with global climate goals and setting a benchmark for the industry.”

Air India’s CEO Campbell Wilson emphasized the airline’s commitment to sustainability, noting, He added that Air India fully supports the Government of India’s initiatives to promote sustainable development in aviation, while also working towards IATA’s Net Zero 2050 target.

Indian Oil had earlier announced the temporary shutdown of its diesel desulphuriser unit at the Panipat plant in July to upgrade it for SAF production. The company is targeting an annual production capacity of 30,000 metric tonnes of SAF and is also exploring upgrades to its kerosene production facilities to scale up supply.

The government has set an ambitious target of achieving 1% SAF use in aviation by 2027 and 2% by 2028. Indian Oil, as the country’s largest refiner, is expected to play a pivotal role in this transition.

Beyond SAF, the PSU is also investing heavily in green hydrogen. At Panipat, it is building a 10,000-tonne-per-annum green hydrogen facility, with construction awarded to Larsen & Toubro. Plans are also underway for an additional 70,000-tonne-per-annum facility, underscoring Indian Oil’s long-term clean energy roadmap.